The Resurgence Of ILS

Gavin Parker, head of intermediaries, funds and captives at Barclays in ILS Guernsey examines why Insurance Linked Securities have become a popular asset class once again.

It is a symptom of difficult market conditions that sophisticated investors look around for new types of investment, needing to work harder to get a return on their assets.

In the current economic climate we are seeing investors being more savvy about the products, structures and services they are putting their money into and also being more realistic about the returns that are possible and available. One key way that investors are adapting is to seek alternative investment options and diversifying their exposure to different asset classes, which may offer better returns, whilst still having a focus on appropriate risk management.